Financial Daily from THE HINDU group of publications
Saturday, Oct 30, 2004
Public Sector Banks
Money & Banking - Financial Performance
BoI Q2 profit down 78 pc
Mr M. Venugopalan
Mumbai , Oct. 29
HIGHER provisioning led to a 78 per cent dip in Bank of India's net profit for the second quarter ended September 30, 2004, at Rs 49.54 crore as against Rs 226.76 crore in the corresponding period the previous year.
During the second quarter, the bank transferred Rs 13,600 crore worth of SLR securities to its `held to maturity' (HTM) portfolio, which resulted in a depreciation of Rs 383.25 crore.
"We decided to move the securities to HTM, even though we knew we will have to take a one time hit. But we thought it was the prudent thing to do keeping in view the direction of interest rates and bond yields," said Mr M. Venugopalan, Chairman and Managing Director, Bank of India, speaking to press persons here today.
Income from treasury operations declined to Rs 207.18 crore (Rs 331.70 crore)
Provisions and contingencies grew to Rs 313.75 crore (Rs 225 crore)
Total income higher at Rs 1,781.74 crore (Rs 1,894.93 crore). This is inclusive of interest earned at Rs 1,521.98 crore (Rs 1,403.93 crore) and other income at Rs 259.76 crore (Rs 491 crore).
Total expenditure was at Rs 1,390.55 crore (Rs 1,327.85 crore). This is inclusive of interest expended at Rs 926.28 crore (Rs 901.23 crore) and operating expenses at Rs 464.27 crore (Rs 426.62 crore).
Gross non-performing assets were at Rs 3,601.59 crore (Rs 4,131.47 crore). Net non-performing assets have risen to Rs 2,052.67 crore (Rs 2,243.74 crore).
Capital adequacy ratio was at 13.05 per cent (12.90 per cent).
For the half year ended September 30,2004, the net profit of was at Rs 212.23 crore (Rs 430.68 crore).
During this period, total deposits grew to Rs 75,637 crore from Rs 67,189 crore.
The share of low cost domestic deposits increased to 38.62 per cent from 36.44 per cent, said a press release.
Total advances increased to Rs 50,698 crore from Rs 43,851 crore.
Retail credit stood at Rs 9,215 crore constituting 25 per cent of non-food credit of the bank, the release said.
The bank's housing loan portfolio was at Rs 2,064 crore constituting 5.51 per cent of non-food credit.
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